Property Values Rebound in Arlington

Overall property values increased 6.3 percent during Arlington’s latest round of real estate assessments, which will be mailed to homeowners and released on the internet later today.

The increase is expected to bring in an addition $30 million in tax revenue for the county, which should help to offset this year’s estimated $25 million budget gap. The county budget office was originally expecting an approximately 1 percent increase in property values.

“It certainly… makes it easier for us to balance the budget,” said Michelle Cowan, Director of the Dept. of Management and Finance, who added that stepped-up commercial lending and property sales helped to drive the increase. “We consider ourselves very fortunate.”

However, Cowan cautioned that continued expenditure pressures — like rising health care, benefit and retirement costs — could still make the upcoming budget process challenging. She also said that other county revenue sources, like sales taxes, are unlikely to post significant increases.

The rise in property values is primarily due to strength in Arlington commercial real estate sector. Commercial assessments were up 12 percent, led by a 22 percent increase in hotel assessments and a 15 percent increase in office assessments. Apartment assessments were up between 8 and 9 percent, Cowan said.

Residential assessments, including single family homes, condos and townhouses, increased 1.4 percent this year. The average home in Arlington is now worth $510,200, up from $503,200 last year. The average property tax bill will now be $4,888, up $67 compared to last year.

Overall assessments were down 7.2 percent in 2010. Residential values were down 3.25 percent last year and commercial values declined 12.7 percent. County budget personnel say this year’s increase will put property values in the county “close to break-even” compared to two years ago.

County Manager Barbara Donnellan will present her proposed budget to the county board in February. The board will then hold public hearings in March, followed by budget adoption in April.

No word yet on how rising property tax revenues may affect Donnellan’s initial pledge to bolster this year’s budget with spending cuts and revenue increases.

Time to figure out how to spend that extra $5 mil. Anyone need another dog park?

KalashniKEV

Clarendon Housing Project?

GeorgeOrwell

it would be nice if the County would actually also update the website to show our 2011 fees for renting our land from the County.
why is the website, once again, behind?

G

They’re updating the assessment info at 5pm today. The tax rate wont be confirmed until April.

GeorgeOrwell

Thanks.
I guess it would make too much sense to have it updated before this press release went out.
My first reaction in seeing this press release is how will it impact ME so I went to look it up and … I don’t know.
So until the database is updated, it is a useless press release.
And yes, I’m one of those people who actually knows that the tax rate is determined later — thanks.

South Arlington

Just so you know, the tax rate is determined later. So it would be difficult to estimate the impact on YOU.

GeorgeOrwell

True. But I can get an idea if my assessment went up my taxes will stay the same or go up. if my assessment goes down, well, that would be even better. they won’t jack the tax rate THAT much.

How does an extra $30 million only “help to offset” a $25 million budget gap?

Lou

They probably allocated that $30 million within an hour of it being announced.

notahoo

Magic! We are short $25m, so let’s jam the land holders! Magic!!

mehoo

Um, it’s not jamming if your wealth goes up and you get taxed more for it. Not a tax rate increase.

I think the property tax sucks overall. But this isn’t a tax increase.

notahoo

The comment is related to the increase in property taxes magically matching the budget shortfall. I whole heartedly agree that “wealth” not “income” should be taxed.

MTH

Arlington Billy

So what you are saying is that responsible people who save and invest their money should be punished by higher taxes because their wealth increses, versus people who live beyond their means?

Burger

You are paying more money to the County Government…It is a tax increase based purely on the whims of what the government decides to be taken out of an illiquid asset.

Tax Man

Actually Arlington County does a pretty good job with assessments. Single family homes here sell much closer to assessments than in other areas and condos tend to sell for more than assessments. I don’t think we have anything to complain about.

Dan

Do you have any current documentation for your assertions ??

Tax Man

You can sort sold price as a percent of tax assessment on some real estate websites. I may be wrong about parts of Arlington – I really only know about 22207, 22205 and 22201. Looks like things may be different in 22204 and probably some other areas. Sorry.

HC

The problem with Arlington’s real estate assessments is that they don’t ground them to the actual sale price and instead just increase/decrease blocks of houses based on statistical data. The only available way to recalibrate the assessed home value with the actual home value is to appeal. Unfortunately, the process is completely skewed against the home owner, and the so-called “Board of Equalization” (should be Board of Maximization) will do anything in their power to keep your real estate assessment as high as possible. It is also not recommended as the process allows their assessors to come your house and find excuses to further increase your assessment for the following year. I think they added a few thousand to our next assessment because they said we had replaced the kitchen floor, when in fact the previous owners had simply added another layer of stick-on linoleum.

Dan

That echoes my experience with the Board of Equalization. It isn’t too surprising considering that the county pays them a fairly substantial amount for not too much effort on their part.
It does seem to be their goal and the individual assessor’s primary goal to set the value as high as possible.

The process is totally stacked against the individual homeowner.

Dan

I also agree with NOT letting them in your house.

My assessor when leaving acted as though he was startled to notice the front porch on my house.

He actually seemed to be implying that someone had come along and added a 30 ft tall front porch while he had been in the house.

@DAn @TaxMan, if you want pick an address and I’ll run the numbers and see how they line up with the tax assessment. I’ve found that usually the tax assessments are below the market value which is good from taxpayer’s perspective.

At top of my ARlington page is a live graph of home values for the county–single family homes. If anybody wants one for a specific zip code hit me up.

Winner, my post is not about helping anybody buy anything. It’s about running numbers on a home to compare to their assessment.

2. The most productive agents only lose money by spending time working rentals because their time is valuable. Usually it is newer agents and less productive agents that work in the rental market—save the exception of listing a previous client’s home for rent as a courtesy. But craigslist is the best place to find rentals anyway from an investor perspective.

There you go a little extra info on the RE industry.

I would comment on other issues raised here by I’m too passionate about tax/liberty issues to keep it in check. So I’ll pass on the subject.

BoredHouseWife

I can imagine bureaucrats rubbing their hands together salivating.

Bender

**Time to figure out how to spend that extra $5 mil. Anyone need another dog park?**

No, they already said that they are going to take our tax money and give it to county employees who make more than many of us do.

The Board can yammer as much as they want, but when they collect more taxes each and every year, they are raising taxes each and every year. Arguing about the assessment and the rate simply masks the real issue: increasing taxes.

My property taxes have doubled in the last 8 years. Doubled!

Burger

If you want to be shocked. Go look at what you paid for water and waste management 8 years ago. That rate has been increasing at a 12-15% increase every year. in otherwords it has doubled in about 5 years.

Wayne Kubicki

The main cost increase driver on your water/sewer bill has been the debt service on the water treatment plant renovation.

Burger

Which accounts for why there is a 10-13% increase every year? No.

As for debt service, isn’t the great county bond rating they always tout resulted in lower interest rate. Or, is it just smoke being placed somewhere.

There are also other ways to service that debt instead say building some stupid artscape or water-filtrated dog park – that money could go to lower the debt service on said water/sewer bill.

It also doesn’t account for the 10-15% increase in trash pick-up prices over the same period.

Burger

My, that is quite a coincidence. Here is the County Boards procedure.

$25 million dollar hole.

Go to the back office.

Wave a few hands…otherwise know as telling the tax assessors the amount they need.

Tada.

Real Estate tax assessments come out to $30 million.

KalashniKEV

Exactly. And the Scamsters will only use it for absurd, useless projects with huge kickbacks, golden parachutes for their fellow gangsters, and fighting against the rest of VA.

FreeLoader

I’m all for more projects in Arlington. I would love to move on in!

CJR

Take it easy on Jay, when my wife and I wanted to sell our condo in 22201, Jay beat out several other internet focused realtors since I liked his style. He’s not your everyday realtor, he’s got a fun edge and nobody knew the condos in 22201 like he did. When we got a lowball offer, he was right there countering from the top of his head. We sold for $40K more than the previous exact condo, and $20K more than the next exact condo a few months later. Very satisfied – so yes, he is qualified to make comments on rental / sales market in the area.